Andreessen Horowitz Isn’t Selling Any Facebook Shares Because “We Believe In The Longterm Value Of The Company”

There are some erroneous reports floating around that investment firm Andreessen Horowitz is selling its stake in Facebook. Quite the contrary, it’s holding on to all of its direct investment, and Wall Street shouldn’t get spooked. What is happening is that A16Z is distributing to its limited partners the shares it got from when Facebook bought its portfolio company Instagram.

As we reported in September and is confirmed by today’s SEC filing, Marc Andreessen the individual is selling a portion of his personal stake in Facebook that he got for being one of the company’s directors. However, A16Z partner Margit Wennmachers says Marc is “selling just enough to cover his tax liability and not a share more.” Fellow director and Accel partner Jim Bryer did the same last month.

Distributing to LPs the spoils of a portfolio company exit is typical. A16Z limited partners will be able to hold or sell the shares as they like.

But A16Z is not cashing out the direct investment it made in Facebook years ago. Wennmachers told me “we’re holding on to it because we believe in the longterm value of the company.” Now that the last major lockup expiration has passed and the share price actually soared 12%, others might start believing too.